Marital Property: Classifying and Valuing a Business in Illinois

 Posted on June 24, 2026 in Property Division

The concept of property division in divorce is familiar to most Americans. Using the Illinois Marriage and Dissolution of Marriage Act, a court will divide property between a divorcing couple fairly and equitably. Dividing a business is much more complicated than dividing a car or the value of a home.

Determining the value of a business is further complicated by the fact that the value of a business may fluctuate over time, increasing or decreasing in value at any point in time. If your spouse owns a business, how will an Illinois court value the business upon divorce?

At Davi Law Group, our experienced Wheaton, IL divorce attorneys are here to help protect your business interests. Attorney Dion U. Davi has been recognized as a Super Lawyer for over 10 years, highlighting his professional excellence. Together, we can answer any questions you have.

Is a Business Considered Marital Property in Illinois?

A court will first attempt to determine whether the business is marital property. If your spouse started the business before the marriage and the profits and assets are kept separate from other marital assets, then a court is likely to find the business is not marital property. This means that your spouse’s business will not be divided between the two of you.

On the other hand, if your spouse started the business during the marriage, or if business profits are used to pay household expenses, then a court may view the business as marital property and subject the property to division.

How Are a Spouse’s Contributions to a Business Weighed in Divorce Court?

When a couple divorces and a business is involved, the court has to decide how much each spouse contributed to that business. This is not always straightforward. Illinois courts look at both direct and indirect contributions.

Direct contributions include things like working in the business, managing employees, or handling finances. Indirect contributions matter, too. A spouse who raised children, managed the household, or supported the other spouse's career helped that business grow, even if they never set foot in the office. The goal is to give credit where it is due. A spouse who helped build something, even in ways that are hard to measure, is not automatically left out of the equation.

How Will the Court Determine the Value of the Business in Illinois?

If spouses can agree on the value of the business and the court believes the agreed-upon value is reasonable, then the court may accept the value of the business without further investigation. However, in a contentious divorce, it is likely the couple will not agree on the value of the business, and the court will become more involved in the valuation process.

For example, the court may use a professional appraiser. The appraiser will attempt to determine a "fair market value" for the business. The evaluation will take into account:

• The business’s expected income
• The business’s future income
• The business’s present assets
• The business’s capital

The appraiser can also take into account the business’s reputation and other factors the appraiser believes help establish the business’s value.

What Other Factors Influence the Value of a Business?

A business valuation is not just about what is on the balance sheet. Courts and appraisers look at a range of factors to determine what a business is actually worth.

One important factor is what similar businesses have recently sold for. If a comparable company in the same industry sold for a certain price, that sale can serve as a benchmark. These are called comparable sales or market comparables. They give the appraiser real-world data to work with instead of relying only on the business's own financial records.

How Much Does a Professional Business Appraisal Cost in a 2026 Divorce?

Business appraisals are not cheap, but they are often necessary. In 2026, the cost of a professional business appraisal in a divorce typically ranges from $3,000 to upwards of $10,000. Complex businesses, those with multiple locations, significant assets, or complicated ownership structures, can cost considerably more to evaluate.

What Is Equitable Distribution, and How Does It Affect Business Division?

Illinois follows the rule of equitable distribution when dividing property in a divorce. This does not mean a 50/50 split. It means the court divides property in a fair way, given the circumstances of the marriage (750 ILCS 5/503).

Several factors influence what "fair" looks like. These include the length of the marriage, each spouse's financial situation, their contributions to the marital estate, and their future earning potential. The court may also consider whether one spouse will have custody of the children and what that means for their financial needs going forward.

When it comes to a business, equitable distribution can play out in a few different ways. One spouse may be awarded the business outright, with the other spouse receiving other marital assets of comparable value. In some cases, a spouse may be awarded a cash buyout. Courts generally try to avoid forcing two divorcing spouses to continue running a business together, though that can happen in certain situations.

Can You Request a Modification of Property Division After a Divorce?

In most cases, property division is final once a divorce decree is entered in Illinois. Courts do not typically reopen property settlements after the fact. This is why it is so important to get things right during the divorce process itself.

There are narrow exceptions. If a spouse hid assets, committed fraud, or failed to disclose the true value of a business, a court may be willing to revisit the division. A spouse who discovers that the other concealed financial information may have grounds to challenge the original order.

Outside of fraud or concealment, post-divorce modifications to property division are difficult to obtain. Working with an attorney from the start is the best way to protect your interests before an order becomes final.

Contact a DuPage, IL Divorce Attorney

Identifying marital property can be a complex process for a couple. When spouses divorce, and a business is involved, it can be difficult to determine whether the business is a marital asset. If you are dividing marital assets as part of your divorce, then you need to ensure that your business is properly valued.

Contact the Wheaton, IL property division lawyers at Davi Law Group. We can help guide you through your property division and ensure your marital property is identified and properly valued. Contact us today at 630-657-5052 to schedule a free consultation.